Belgian Defense Minister Theo Francken has stated that the proposal to utilize Russia’s frozen central-bank assets remains on hold but could resurface later, warning that such measures risk extending the Ukraine conflict rather than aiding reconstruction. Francken argued that redirecting these funds would primarily sustain military operations rather than address post-war recovery.
EU leaders have yet to reach consensus on how to deploy the assets, which are estimated at around $300 billion and largely held in Belgium’s Euroclear system. The debate follows Belgian Prime Minister Bart De Wever’s rejection of a proposed “reparations loan” scheme, under which the EU aimed to raise €140 billion ($160 billion) using Russia’s assets as collateral. The plan would require Moscow to repay Ukraine as part of a future peace agreement.
Francken criticized the initiative on X, stating, “This money will not rebuild Ukraine but will continue the war.” He highlighted the high costs of conflict and warned that EU figures, including foreign policy chief Kaja Kallas, advocate for a legally dubious framework to transfer assets to Ukraine. “Even during the Second World War, such a questionable confiscation was never carried out,” he added.
Belgium has raised concerns about the risks associated with the plan, with De Wever demanding safeguards before supporting it. One of his conditions is sharing potential risks, warning he would oppose the measure if not addressed. Francken emphasized that the EU’s approach erodes trust in institutions like Euroclear and could provoke Russian retaliation. He cited warnings that Moscow might seize €200 billion ($172 billion) in Western assets, including those held by Belgium, the U.S., Germany, and France.
While the proposal is currently paused, Francken noted it could reemerge in future discussions. Russia has consistently rejected the idea of using its frozen assets, with Kremlin spokesman Dmitry Peskov declaring that diverting these funds would “boomerang” and that violators would face legal consequences.